# Licensing & Ownership Boundaries

> What an approved licensing agreement covers, and what a Hazels NFT explicitly does not represent.

## Character licensing

Hazels may authorize selected characters, traits or artwork for approved physical products.

Licensing agreements may include:

- Product category
- Territory
- Distribution channel
- License period
- Manufacturing standards
- Minimum quality requirements
- Royalty rate
- Sales-reporting obligations
- Audit rights
- Intellectual-property protections

Revenue received through approved licensing agreements enters the applicable Hazels RWA reporting cycle after contractual costs, partner shares, taxes and reserves are deducted.

## Ownership boundaries

A Hazels NFT does not represent:

- Equity in Hazels or an affiliated company
- Ownership of manufacturing inventory
- Ownership of a factory, retailer or distribution partner
- A fixed claim against company assets
- A guaranteed percentage of future revenue
- A guaranteed APY or financial return
- Control over day-to-day commercial operations

> **WARNING:** Any RWA Pool allocation remains subject to the final product terms, applicable law, jurisdictional eligibility and the published conditions of the relevant reporting cycle.

## Core principle

Hazels RWA connects digital ownership with measurable physical commerce.

Collectible cards create the first product layer. Toys, figures, apparel, accessories, publishing and licensed consumer products expand that layer over time.

Physical products introduce Hazels characters to audiences beyond Web3.

Verified ownership ensures that the people who supported the original collection remain connected to the value created as the IP enters the physical world.

> **TIP:** **Hazels begins onchain, expands into physical culture and returns measurable value to the network that made that expansion possible.**